TORONTO — The Canadian dollar gained ground Monday after European leaders said they made progress on resolving the region’s debt crisis during weekend meetings.

They plan to unveil details Wednesday of a plan which is likely to include measures to recapitalize the region’s banks, which are expected to accept steep losses on Greek debt, as well as boosting the eurozone bailout fund.

The loonie rose 0.24 of a cent to 99.38 cents US.

The advance came a day before the Bank of Canada’s scheduled announcement on interest rates. The central bank is widely expected to leave its key rate unchanged at one per cent.

The currency also found support from commodity prices which moved higher amid data showing an expanding Chinese economy.

HSBC’s preliminary — or “flash” — China Manufacturing Purchasing Managers’ Index climbed to 51.1 on a 100-point scale, up from 49.9 in September.

Among key sub-components of the survey, manufacturing output rose to a six-month high of 51.7, picking up from 50.3 in September, and above the 50 level which indicates expansion.

The December crude contract on the New York Mercantile Exchange gained 42 cents to US$87.82 a barrel.

Copper prices also took off after slumping over five per cent last week with the December copper contract in New York ahead 11 cents to US$3.34 a pound. China is the world’s biggest consumer of the metal, which is considered a barometer for economic growth as it is used in so many applications, from wiring to infrastructure.

Bullion prices also advanced with the December contract up $20.70 to US$1,656.80 an ounce.